BP chief executive expected to resign

BP will sacrifice embattled chief executive Tony Hayward within days as it tries to rebuild its image in the aftermath of the Gulf of Mexico oil disaster, reports said yesterday.

The BBC said Mr Hayward was negotiating his exit and an announcement is likely by today when the BP board meets ahead of second quarter results expected to reveal a 30-billion-dollar provision for paying for the disaster.

In the Gulf, US oil spill chief Thad Allen said BP's long-awaited operation to permanently plug the leaking Gulf of Mexico well had been delayed and will now probably begin next week.

Originally expected as early as tomorrow, Mr Allen said nothing major had happened to force the delay, it was just a "refined and revised" timeline from BP as it redeploys vessels and personnel following a recent storm.

The leak was sealed 10 days ago with a giant cap, but up to four million barrels of crude had already spewed into the sea since a deadly rig explosion in April.

Toxic crude has washed up on the shores of all five US states on the Gulf Coast and vital tourism, fishing and oil industries in the region have been decimated by the disaster.

BP is facing a lengthy claims process and hundreds of lawsuits are pending against the British energy giant, not to mention hearings into the cause of the initial April 20 blast that should determine eventual liability.

The BBC report, which quotes a senior BP source, said there was a "strong likelihood" Bob Dudley, who took over the day-to-day management of the spill response from Mr Hayward last month, would be his replacement.

The Sunday Telegraph said there could be wrangling over Mr Hayward's severance package, under which he is likely to be paid a minimum figure of just over one million pounds (€ 1.2 million).

BP's efforts to permanently resolve the oil disaster in the Gulf were threatened last week by Tropical Storm Bonnie, but an evacuation was called off as the system weakened and ships and drilling rigs are now back on site.

BP and US officials plan two operations to kill the well.

The first, a "static kill," involves pumping heavy drilling fluid known as "mud" through the cap on top of the well.

The ultimate solution will be the relief wells - the first of which will intersect the original well before the end of August.

Using the same process as the static kill, drilling fluid, which is denser than oil, will be pumped via the relief well until the flow of crude is overcome, allowing the reservoir to be sealed with cement.

Before either can begin, the last section of the relief well must be secured with a 900-metre piece of casing, which has to be cemented in place.